Constitutional Mandate

• The Comptroller and Auditor General (CAG) is a constitutional body under Article 148 of the Constitution. 

Appointment:

• Authority: The Comptroller and Auditor General is appointed by the President of India by warrant under his hand and seal. 
• Eligibility: The constitution has not provided any eligibility criteria to be fulfilled while appointing the Comptroller and Auditor General.
• Oath: 
  • To bear true faith and allegiance to the constitution of India;
  • To uphold India’s sovereignty and integrity;
  • To perform his duty faithfully, to the best of his ability, knowledge, and judgment, without fear or favor, affection or ill will;
  • To uphold the constitution and law;
• Tenure: The CAG holds office for a period of six years or up to the age of 65 years, whichever is earlier.
• Resignation: He can resign by addressing a letter to the President of India.

Important Articles Related to Comptroller and Auditor General

• Article 148: It deals with the appointment, oath, tenure, and removal of the Comptroller and Auditor General of India. 
• Article 149: The power and duties of the Comptroller and Auditor General are mentioned by the constitution in this article.
• Article 150: This article says that accounts of the Union and of the States shall be kept in such form as the President may specify.
• Article 151: This act directs the Comptroller and Auditor General of India to submit reports relating to the accounts of the Union to the president, which in turn will be laid before the Parliament.
• Article 279: Under this article, the Comptroller and Auditor General ascertains and certifies the “net proceeds” from tax. 

Functions of Comptroller and Auditor General:

• General Functions
  • Guardian of Public Finance: The CAG is the guardian of the public purse, controlling the entire financial system both at centre and state levels.
  • Financial Administration: The CAG is responsible for upholding constitutional laws in the field of financial administration.
• Specific Functions:
  • Audit Consolidated Fund of India: The CAG is responsible for auditing accounts related to all expenditures from the Consolidated Fund of India, the Consolidated Fund of each state and UT’s having a legislative assembly.
  • Audit Contingency Fund and Public Account of India: The CAG is mandated to audit expenditure from the Contingency Fund of India and the Public Account of India as well as the Contingency Fund and Public Account of each state.
  • Audit Subsidiary Accounts: The Comptroller and Auditor General have to audit trading, manufacturing, profit and loss accounts, balance sheets, and other subsidiary accounts maintained by any central government or state government department.
  • Audit State Financed Undertakings: The Comptroller and Auditor General audits receipts and expenditures of all bodies and authorities financed substantially from the Central or State revenues; government companies; and other corporations and bodies, when so required by related laws.
    • This includes bodies such as Damodar Valley Corporation, Oil and Natural Gas Corporation, Indian Airline Cooperation, etc.
  • Audits of Accounts: Comptroller And Auditor General audit the accounts of authorities based on the request of the President.
  • Submit Report of Audit to the Authority: The Comptroller and Auditor General submit the audit report of the center to the President and that of the state governments to respective governors.
    • These reports are then submitted before legislatures of states as well as the Parliament.
  • Certify Net Proceeds of Tax: The Comptroller and Auditor General certify the net proceeds of the tax or duty, which is a final certification.
  • Support Public Accounts Committee: The Comptroller and Auditor General acts as guide, friend, and philosopher of the Public Accounts Committee of the Parliament.

Removal of Comptroller and Auditor General

• Grounds of Removal: The Comptroller and Auditor General can be removed from office on the same grounds and in the same manner as a judge of the Supreme Court. The grounds are either proved misbehavior or incapacity.
• Removing Procedure: Based on any complaints against a Comptroller and Auditor General, an inquiry is initiated. The inquiry report is laid before both houses of the Parliament for voting.
  • The President is empowered to remove the Comptroller And Auditor General on the basis of a resolution passed by both Houses of Parliament with a special majority (majority of two-thirds members present and voting supported by more than 50% of the total strength of the house).

Independent Nature of Comptroller and Auditor General:

• Security of Tenure: The Comptroller and Auditor General do not hold office till the pleasure of the president. He can only be removed by following the procedure mentioned in the constitution.
• Ban on Future Office: The Comptroller and Auditor General is not eligible to hold office under the state or the center post-completion of tenure.
• Salary Provisions: Neither his salary nor other monetary benefits be altered to his disadvantage after the appointment.
• Financial Burden on Consolidated Fund of India: Administrative expenses of the office of Comptroller and Auditor General are charged upon the Consolidated Fund of India.
• Powers of Accounts Department: The president determines the conditions of service of persons serving in the Audits and Accounts department after consultations with the Comptroller and Auditor General.
• Representing Comptroller and Auditor General: No minister can represent Comptroller and Auditor General in the Parliament. Further, no minister would be called upon to take responsibility for the actions of CAG.

Criticism of the Comptroller and Auditor General

• Auditor-only Role: The CAG is criticized for being only an auditor of funds as he has no control over the issuance of funds from the Consolidated Fund of India.
• Audit of Government Companies: The Comptroller and Auditor General has no powers to audit some of the government companies such as Life Insurance Corporation.
• Paralyzes Decision-making: The CAG’s actions deter decision-making for the fear of audits. This has affected the functioning of public bodies.
• Excessive Burden: The CAG’s responsibility has increased owing to the rise in public-private partnership projects, thus affecting its effectiveness.
• Completion of Term: Despite a term of 6 years, successive Comptroller and Auditor Generals are unable to completely utilize their serving period due to the age ceiling of 65 years.
• Appointment: Currently, the Comptroller and Auditor General is appointed by the government in power without consultations from the opposition parties. This reduces the ability of the Comptroller and Auditor General to work independently.

Some Famous Comptroller and Auditor Generals

• Vinod Rai
  • Vinod Rai is a retired 1972 batch IAS officer, who served as the 11th CAG of India from 7 January 2008 till 22 May 2013.
  • He is known for his audit report that blamed the government for its 2G spectrum policy that caused a loss of over Rs 1 lakh crore to the exchequer.
• Girish Chandra Murmu
  • Girish Chandra Murmu is the current CAG of India, who is a retired 1985-batch IAS officer. Prior to his appointment as CAG, Murmu served as the first Lt Governor of UT of Jammu and Kashmir.
  • He is currently serving as the chairman of the United Nations Panel of External Auditors and the Asian Organization of Supreme Audit Institutions.